AUTHORITY OF LIMITED RESULTS PRESENTATION FOR Q4 & FY 2018-19 LIMITED

Economic & Steel Scenarios WORLD ECONOMIC SCENARIO

4.7 4.6 4.5

3.8 3.7 3.5 Growth Rates ( in %) 2.4 2.3 2017 (E) 2 2018 (E) 2019 (P)

World Advanced Economies Emerging & Developing Economies

Global growth in 2019 & 2020 is projected at 3.5 and 3.6 percent

SOURCE: IMF INDIAN ECONOMIC SCENARIO

GDP Growth % at Constant Prices RE: Revised Estimates (2011-12 Prices) AE: Advance Estimates 8.2% 8.2% 7.2% 7.2% 7.0% 6.1%

2013-14 2014-15 2015-16 2016-17 (2nd 2017-18 (1st RE) 2018-19 (2nd RE) AE)

Source (Year) Growth Projection ADB (2019) – market prices 7.6 % IMF (2019) – market prices 7.5 % SOURCE: CSO, GoI & Economic Survey WORLD STEEL SCENARIO

Crude Steel Production (mtpa)

1809 1730 (Crude Steel Production) 1627

In 2018 : Asia : 1271 mtpa World 928 880 808 819 871 859 • China : 928 mtpa China • India : 107 mtpa Rest of World • Japan: 104 mtpa USA : 87 mtpa 2016 2017 2018 World Steel Association (WSA) forecast : Finished Steel Consumption (mtpa) • Global steel demand will increase by 1.3% in 2019 and 1% in 2020 1712 1735 1752 1597 • Steel demand in China is expected to 1546 1551 1505 1521 decelerate in 2020. • In the Emerging and Developing Economies excluding China, steel demand is forecast to grow by 2.9% in 2019 and 4.6% in 2020. • India set to grow fastest amongst major steel consumers at 7.1% and 2013 2014 2015 2016 2017 2018 2019 2020 7.2% in 2019 and 2020 respectively. (F) (F) INDIAN STEEL SCENARIO

• India’s Crude steel Crude Steel Production (mtpa) production (2018) : 106.5 95.5 101.5 89.0 106.5mtpa (growth 81.3 87.3 4.9% of 4.9 % over 2017) • As per WSA, Short Range Outlook, demand in India is set to grow at 7.1% in 2019 2013 2014 2015 2016 2017 2018 and 7.2% in 2020. Finished Steel Consumption (mtpa) • India to overtake USA as the second largest 110 96 103 84 89 consumer of steel in 74 76 80 2019.

Source: WSA 2013 2014 2015 2016 2017 2018 2019(F)2020(F) INDIAN STEEL PERFORMANCE

% +/- Over INDICATORS UNIT 18-19 17-18 CPLY Real GDP Growth Rate # % 6.6 7.2 -0.60 Growth in Index of Industrial Production ^ % 3.6 4.4 -0.80 Exchange Rate ( Wt. Avg. of RBI Ref. Rate) Rs/USD 69.89 64.45 -8.43 Production - Finished Steel * MT 131.57 126.86 3.7 Imports - Finished Steel * MT 7.83 7.48 4.7 Exports - Finished Steel * MT 6.36 9.62 -33.9 Consumed for Downstream Processing* MT 33.01 32.40 1.9 Consumption - Finished Steel * MT 100.04 92.32 8.4 Less Variation in Stock * MT 2.50 1.61 55.7 Real Consumption of Finished Steel * MT 97.54 90.71 7.5

# 18-19 data is for Q3 18-19 ^ As per CSO data *Source JPC Report 7 INTERNATIONAL PRICE (FOB) TREND

USD/Tonne

HRC- China CRC- China 631 628 609 611 615 619 614 622 621 616 615 595 590 591 568 552 545 556 553 586 593 588 593 525 522 575 564 572 579 579 574 571 551 547 545 531 529 506 513 522 480 486

HRC- CIS CRC- CIS 652 651 627 632 617 622 612 618 614 600 596 576 594 577 556 551 567 554 538 527 544 606 598 581 574 589 567 551 544 560 548 560 540 526 514 512 490 499 494 483 465 452

Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 STEEL AUTHORITY OF INDIA LIMITED

Performance Highlights PERFORMANCE HIGHLIGHTS : FY2018-19

 Net Sales : Rs 66267 Crore

FINANCIAL  EBITDA : Rs 10267 Crore PERFORMANCE  PBT : Rs 3338 Crore  PAT : Rs 2179 Crore

 Hot Metal Production : 17.513 MT  Crude Steel Production : 16.264 MT PRODUCTION & SALES  Saleable Steel Production : 15.069 MT PERFORMANCE  Semis component in production : 21.59 % of saleable steel  Value Added Production : 6.897 MT  Production through concast route : 13.804 MT  Saleable Steel Sales : 14.115 MT PERFORMANCE HIGHLIGHTS : Q4 FY2018-19

 Net Sales : Rs 18323 Crore

FINANCIAL  EBITDA : Rs 2461 Crore PERFORMANCE  PBT : Rs 712 Crore  PAT : Rs 468 Crore

 Hot Metal Production : 4.671 MT  Crude Steel Production : 4.338 MT PRODUCTION & SALES  Saleable Steel Production : 4.123 MT PERFORMANCE  Semis component in production : 24.51% of saleable steel  Value Added Production : 2.122 MT  Production through concast route : 3.745 MT  Saleable Steel Sales : 4.133 MT SAIL STOCK PRICE MOVEMENT

SAIL's Share Price (Rs.) Sensex Points 39832 37607 38673 36227 36194 36257 33213 34057 34184 35322 32515 38645 39032 31146 30922 35965 35160 35423 36068 35867 32969 34442 31730 31284 33149

92 78 89 83 83 78 76 78 80 77 70 68 63 61 64 54 55 54 56 47 51 57 58 56 48

Closing Share Price and Sensex as Dividend on the last day of the month Interim Final Total Dividend Tax (%) (%) (%) (Rs. crore) * As on May 30, 2019 (Rs. crore) FY 18 - - - - - FY 17 - - - - - DIVIDEND FY16 - - - - - PAYOUT FY15 17.5 2.5 20 826 165 FY14 20.2 - 20.2 834 142 FY13 16 4 20 826 134 STEEL AUTHORITY OF INDIA LIMITED Operational Performance PRODUCTION PERFORMANCE

All figures In Million Tonne

15.1 4.1 13.9 14.1 12.8 12.4 3.6 SALEABLE STEEL PRODUCTION

(incl. SSPs) FY 15 FY 16 FY 17 FY 18 FY 19 Q4 FY18 Q4 FY19

Annual Quarterly

14.7 13.8 13.4 4.0 12.4 11.9 3.5 SALEABLE STEEL PRODUCION (5 ISPs) Q4 FY18 Q4 FY19 FY 15 FY 16 FY 17 FY 18 FY 19 PRODUCTION PERFORMANCE : FY19

11.4% 1.3%

CRUDE STEEL BOF 15.1% Ingot PRODUCTION EAF Route BY PROCESS THF CC

84.9% Route 87.3%

SALEABLE STEEL 45.8% Commodity PRODUCTION 54.2% Value Added BY PROCESS PRODUCTION PERFORMANCE : FY 19

SAIL

21.6% PRODUCT MIX : 50.8%

5 ISPs 27.6%

BSP 23.6% 61.0% 15.4%

DSP 32.0% 68.0% Flats

RSP 89.3% 10.7% Longs Semis

BSL 99.6% 0.4%

ISP 58.8% 41.2% SALES PERFORMANCE

All figures In Million Tonne 14.1 14.1 13.1 4.13 11.7 12.1 3.74 TOTAL SALES (incl. SSPs)

FY 15 FY 16 FY 17 FY 18 FY 19 Q4 FY 18 Q4 FY 19

Annual Quarterly

13.8 13.8 12.7 11.7 4.03 SALES 11.2 3.67 OF 5 ISPs

Q4 FY 18 Q4 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 STEEL AUTHORITY OF INDIA LIMITED Efficiency & Sustainance Performance NEW PRODUCTS DEVELOPED DURING FY19

NARRROW PARALLEL FLANGE BEAM 750: USAGE IN CONSTRUCTION INDUSTRY

LINKE HOFMANN BUSCH (LHB) WHEELS: USAGE FOR RAILWAYS PRODUCT CUSTOMISATION FOR END USERS HYVA TIPLERS

Main Frame Track Frame HSMP AND PMP GRADE: IS 2062E450, E600

Boom Front Frame Arm PRODUCT CUSTOMISATION FOR END USERS

ASHOK LEYLAND U TRUCK U 2518T CAPTAIN 2518

HRC PMP GRADE: IS5986, ISH500, LAHFQ450 PRODUCT CUSTOMISATION FOR END USERS

Rear Axle Beam developed using HRC SAILFORMING 410 / 450 grades

Live Axle Beam

Dummy Axle Beam TECHNO-ECONOMIC PARAMETERS

Coke Rate: kg/thm CDI Rate(for CDI Furnace only): kg/thm 77 77 513 504 489 66 473 456 452 58 58 55

FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Reduction of 11.9% over FY14 Increase of 40% over FY14 3 Specific Energy Consumption: GCal/tcs BF Productivity: T/m3/Day 1.70 6.59 6.60 6.52 6.51 6.49 6.50 1.67 1.65

1.58 1.58 1.56

FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Reduction of 1.3% over FY14 Improvement of 4.4% over FY14 SUSTAINANCE PARAMETERS

PM Emission Load: kg/tcs Specific CO2 Emission: m3/tcs 0.83 2.65 0.81

0.77 2.61 2.60 0.74 2.57 0.70 2.56

FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 Reduction of 16% over FY15 Reduction of 3% over FY15 3 Solid Waste Utilisation (%) Specific Water Consumption: m3/tcs

85 84 83 83 85 3.83 3.75 3.66 3.62

3.44

FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY17 FY18 FY 19 Consistent Utilisation of Solid Waste Reduction of 6% over FY15 MANPOWER PERFORMANCE

LABOUR PRODUCTIVITY TREND (tcs/man/year)

389 344 320 302 315 Improvement 278 258 of 50% over FY13

FY 13 FY 14 FY 15 FY 16 FY17 FY18 FY19 3 LABOUR PRODUCTIVITY DURING 2018-19

MANPOWER (tcs/man/year)

407 426 373 362 Total manpower as on 01.04.2019: 72339

Reduction in 2018-19: 4531

Q1 FY Q2 FY Q3 FY Q4 FY 19 19 19 19 POWER CONSUMPTION – FY 19

9.99%

Own CPP

Drawl from Grid

50.02% Purchase through 37.45% Power Exchange JV CPP

2.54% STEEL AUTHORITY OF INDIA LIMITED

Financial Performance FINANCIAL PERFORMANCE

Rs. Crore FY19 FY18 Q4 FY 19 Q3 FY 19 Q4 FY 18 (INDAS Compliant figures)

Sales 66267 58297 18323 15660 16811

EBITDA 10267 5102 2469 2653 2574

Depreciation 3385 3065 890 855 848

Finance Cost 3155 2823 803 825 917

PBT Before Exceptional Items 3727 -785 766 973 809 Exceptional/Abnormal Items (VRS/Suspended Operations) 389 -26 55 23 -377 PBT After Exceptional Items 3338 -759 712 950 1186

Tax 1159 -277 244 333 370

Profit After Tax 2179 -482 468 616 816 FINANCIAL PERFORMANCE

Annual Profit Trend 10267

EBITDA 7112 Cash Profit 5590 PBT 5102 3866 PAT 3338 2345 2079 2280 2179

672

-153 -482 -759 -1619 -2203 -2833

-4021 -4851

-7007 FY 15 FY 16 FY 17 FY 18 FY 19

All figures in Rs crore FINANCIAL PERFORMANCE 2653 2461

1828 Quarterly 1657 Performance 950

712 616 Q4 FY 19 vs 468 Q3 FY 19 Q4 FY 19 Q3 FY 19 EBITDA Cash Profit PBT PAT All figures in Rs crore

2461 2574

Quarterly 1657 1658 Performance 1186

Q4 FY 19 vs 712 816 Q4 FY 18 468

Q4 FY19 Q4 FY18 FINANCIAL PERFORMANCE

2653 1447 2461 294 74 446

EBITDA 589 Movement Q4 FY 19 vs Q3 FY 19 EBITDA Q3 Price Volume Raw Cost Others EBITDA Q4 FY19 Impact /Mix Material FY19 Usage All figures in Rs crore

2574 495 229 150 184 2461 45 EBITDA Movement Q4 FY 19 vs

Q4 FY 18 EBITDA Q4 Volume Price Raw Cost Others EBITDA Q4 FY 18 /Mix Impact Material FY 19 Usage FINANCIAL PERFORMANCE

Annual Net Worth Annual Borrowings & Interest cost 45409 45170 45000 41396 3500 43523 40000 35141 39196 35000 31837 36009 35714 38152 3155 30000 2823 2500Annual 25000 2528 20000 2300 Borrowings 15000 1500Interest 10000 1454 5000 Cost 0 500 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 Quarterly Net Worth Quarterly Borrowings & Interest cost 46818 50000 45409 46477 44997 45170 1000 45000 35714 36254 36851 37441 38152 950 40000 900 35000 917 850 30000 800Quarterly 25000 826 803 750 20000 Borrowings 755 771 700 15000 650 10000 600Interest 5000 550Cost Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY 0 500 18 19 19 19 19 Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY All figures in Rs. crore 18 19 19 19 19

Debt Equity Ratio 31/03/15 31/03/16 31/03/17 31/03/18 31/03/2019 0.69 0.90 1.15 1.27 1.18 STEEL AUTHORITY OF INDIA LIMITED Capacity Building SAIL’s MODERNISATION & EXPANSION PLAN

Actual Production Capacity After Million Tonne 2018-19 On-going Expansion Crude Steel 16.264 21.4 Saleable Steel 15.069 20.2

Technological Shift Before After Technology Expansion Expansion BOF Steel Making 79% 100% CC Route 71% 94% Pelletisation Plant No Yes Coke Dry Quenching Partial Yes Top Pressure Recovery Turbine No Yes Auxiliary Fuel Injection in BF Partial Coverage Full Coverage Desulphurization of Hot Metal Partly 100 % Beam Blank Casting No Yes Coupled Pickling & Tandem Mill No Yes Beneficiation Plant Partial Full MODERNISATION & EXPANSION PLAN

 Production through twin-hearth furnace (THF) route to be replaced by BOF-LD converter route.  Production through Ingot – teeming route to be replaced with continuous cast production route. EXPECTED  Enhancement of Production volume by addition of 2 new 4060 m3 Blast OUTCOME Furnaces and one of 4160 m3.  Increased Market Share.  World class technology and products.  Improved Product Mix / proportion of value added products to increase.  Enhanced Pollution Control measures, with Environmental Conservation.

 Auto grade CR Products, Galvanized Coils /Sheets.  Plates / Pipes to meet up to API 100 Grade specification.  Universal Beams/Heavy Beams to support increasing Infrastructural PRODUCTS requirements. BEING  Rails for Metro – Railways and Dedicated Freight Corridors. ADDED:  Increased production of Rails and Wheels to meet the increasing requirements of Indian Railways.  Quantum jump in Rounds and Structural production.  Wider Plates in the size of 4300 mm. ONGOING PROJECTS (CAPEX)

(Rs. Crore) 12191 61870 1 Expansion of existing capacity

3509 2 Value-addition / Product-mix improvement 7039 22739 3 Technological up gradation / Modernization Sustenance including de-bottlenecking, AMR 4 & Environment 39131 39131 5 Total Estimated Cost In addition, a Capex Plan of Rs. 10264 crore has been made for augmentation of Raw material 1 2 3 4 5 facilities.

11021 Rs. crore TOTAL CAPEX 9731 9890 (INCL. ON MODERNISATION & EXPANSION) 6840 Capex Plan for FY19 was Rs.4000 6034 4938 5130 Crore (including expenditure towards 4303 Capital Repairs and Spares needed to be capitalised under Ind AS). Capex Plan for FY20 is Rs.4000 Crore FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 CAPACITY AFTER EXPANSION

Saleable Steel Hot Metal (MTPA) Crude Steel (MTPA) (MTPA) Plant After After After 2018-19 2018-19 2018-19 Expansion Expansion Expansion BSP 4.75 7.5 4.45 7.0 3.67 6.6 DSP 2.51 2.5 2.22 2.2 2.12 2.1 RSP 3.84 4.5 3.66 4.2 3.33 4.0 BSL 4.21 5.8 3.83 4.6 3.63 4.2 ISP 2.20 2.9 1.89 2.5 1.91 2.4 VISL 0.00 0.3 0.00 0.2 0.01 0.2 ASP - - 0.10 0.5 0.12 0.4 SSP - - 0.12 0.2 0.28 0.3 TOTAL 17.51 23.5 16.27 21.4 15.07 20.2 PRODUCT MIX POST EXPANSION – SALEABLE STEEL

Galvanized Products CR Coils/Sheets 2% PET Products FY 2018-19 6% 1% Semis 13%

Structurals HR 7% Plates/Coils/Sh eets/skelp 28% Bars & Rods 18%

Galvanized PET Products CR Products Rly Products 3% PM Plates 9% Coils/Sheets 1% 16% 11% Semis 12% Structurals HR 14% Plates/Coils/ Sheets/skelp 16%

Bars & Rods Post 19% Ongoing Expansion PM Plates 16% Rly Products 8% MODERNISATION & EXPANSION PLAN -

Facilities added: •Steel melting Shop – Electric Arc Furnace (55 T); AOD Converter (60 T); Ladle Furnace (60 T); Single Strand Slab Caster. • Roll Grinder for Hot Rolling Mill • Cold Rolling Mill Complex

Production (MTPA) : Item 2018-19 (Actual) After Expansion Crude Steel 0.12 0.18 Saleable Steel 0.28 0.34 MODERNISATION & EXPANSION PLAN - IISCO STEEL PLANT

Facilities Completed: • Raw Material Handling System • New Coke Oven Battery (0.88 Mtpa, 7 m tall) • Coke Dry Cooling Plant • Sinter Machines (3.88 Mtpa gross sinter production, 2x204 m²) • Blast Furnace 4160 m3 volume (2.7Mtpa) • 3 nos. of 150 T BOF Converters • 2x6 Strand Billet Casters (1.67 Mtpa) • 1x4 Strand Bloom-cum-Beam Blank Caster (0.83 Mtpa) • Wire Rod Mill (0.55 Mtpa) • Bar Mill (0.90 Mtpa) • Universal Section Mill (0.85 Mtpa) MODERNISATION & EXPANSION PLAN - IISCO STEEL PLANT

New stream to produce 2.7 Mtpa of Hot Metal & 2.5 Mtpa of Crude Steel

Production (MTPA) : Item 2018-19 (Actual) After Expansion Crude Steel 1.89 2.50 Saleable Steel 1.91 2.39

The expanded capacity of IISCO Steel Plant has been dedicated to the Nation by the Hon’ble Prime Minister on 10.05.2015. Current ProgressBURNPUR of Expansion at IISCO Steel Plant

Coke Oven Battery Sinter Plant Blast Furnace

BOF Converters

Billet Casters

Wire Rod Mill MODERNISATION & EXPANSION PLAN– STEEL PLANT

Facilities Completed: •Re-building of Coke Oven Battery #1 & #2. •Up-gradation of Blast Furnace #2 and Stoves Up-gradation of #5 •Auxiliary Fuel Injection (CDI) in Blast Furnaces #2 & #3. •Turbo-Blower-8. •New CRM Complex (1.2 Mtpa) •Up-gradation of HSM with augmentation of Roughing Facility (4.5 MTPA).

Production (MTPA) : Item 2018-19 (Actual) After Expansion Crude Steel 3.83 4.61 Saleable Steel 3.63 4.18 Current Progress of Expansion at

Coke Oven Blast battery-2 Furnace-2

PLTCM

Coil Packaging Line

Skin Pass Mill Bell Annealing Furnace MODERNISATION & EXPANSION PLAN– STEEL PLANT Facilities Already Completed: • Ore Handling Plant part-A • Second Sinter Machine in Sinter Plant-3 (3.7 MTPA) • New Coke Oven Battery No. 11 (7 m tall, Capacity 0.881 mtpa) • Oxygen Plant (BOO basis) • Universal Rail Mill (1.2 MTPA) and Rail Welding Line • Bar and Rod Mill (0.9 MTPA) • Blast Furnace 4060 m3 (2.8 Mtpa) • New Steel Melting Shop (SMS-3) with Converter-1 &2 and New Billet Casters (2x6) and New Billet-cum-Bloom Caster (1X6).

Facilities Likely to be Completed During FY 19-20: • Convertor - 3, LF -3, Argon Rinsing Station-3 in SMS -3. Production (MTPA) : Item 2018-19 (Actual) After Expansion Crude Steel 4.45 7.0

Saleable Steel 3.67 6.56 Current Progress of Expansion at

Sinter Machine Coke Oven Battery - 11

Blast Furnace - 8

Continuous Caster - 1

Bar & Rod Mill

Universal Rail Mill MODERNISATION & EXPANSION PLAN– STEEL PLANT

Facilities Completed: • New Coke Oven Battery -6 (7 m tall, 1 x 67 ovens) • New Sinter Plant -3 (1 x 360m²) • New Blast Furnace -5, useful volume - 4060 m3 • New 3rd Single Strand Slab Caster (1.5 MTPA) • New Oxygen Plant 2x700 tpd on BOO basis • New 3rd BOF (150 T) Convertor • New 4.3 meter Wide Plate Mill

Production (MTPA) : Item 2018-19 (Actual) After Expansion Crude Steel 3.66 4.20 Saleable Steel 3.33 3.99

The expanded capacity of has been dedicated to the Nation by the Hon’ble Prime Minister on 01.04.2015. Current Progress of Expansion at RourkelaSINTER PLANT Steel - 3 Plant

Coke Oven Battery - 6 Sinter Plant - 3

1 3rd BOF Converter 3rd Slab Caster

BOF Converter

Blast Furnace - 5 Tapping MODERNISATION & EXPANSION PLAN– STEEL PLANT

Facilities Completed: • Rebuilding of Coke Oven Battery no-2 • New Ladle Furnace (125T) • Coke Sorting & Coal Handling Plant • New Dolomite Plant (300tpd) • Bloom-cum-Round Caster 1X4 (0.75 Mtpa) • New Medium Structural Mill (1.0 Mtpa)

Production (MTPA) :

Item 2017-18 (Actual) After Expansion

Crude Steel 2.04 2.20

Saleable Steel 1.95 2.12 Current Progress of Expansion at

Coke Oven Battery-2 Ladle Furnace-3

Bloom cum Round Caster

Medium Structural Mill RAW MATERIALS

Iron Ore Hot Metal Year Consumption Linkages of (mtpa) (mtpa) 2017-18 15.983 25.87 Existing Mines The capacity of existing mines at Kiriburu, Meghahatuburu, Bolani & Gua are being ramped up to meet the requirement of Iron Ore for post ongoing phase of expansion

New Pellet Plants - 4 MTPA capacity at Post 23.46 39 Gua, 1 MTPA at Dalli and 2 MTPA at RSP Expansion has been planned for utilization of accumulated Iron Ore Fines & Generated Fines

In addition to the above, new mechanised Iron Ore Mines are being developed at Rowghat, Chiria and Taldih RAW MATERIALS – Iron Ore

Existing Capacity* after Mine Capacity* ongoing Remarks (mtpa) expansion (mtpa) Kiriburu 5.50 5.50 • Expansion at Kiriburu has already been completed Meghathaburu 5.00 6.50 whereas Meghathaburu is being ramped up to meet the requirement of the ongoing expansion plan. Bolani 7.50 10.00 • At Bolani, processing plant has been upgraded to 7.5 Gua 4.00 10.00 mtpa and is under stabilization. At Gua, Stage II FC is awaited from MoEF required for expansion. Rajhara, Dalli 8.70 7.00** **Depleted resources and quality constraints • New Pellet Plants shall use the existing reserve of fines New Pellet Plants New 7.00 incl. dumps & slimes at captive mines. • Environment clearance obtained & FC obtained on 23rd Oct. 2017 for ML-162 lease. Barsua, Kalta, • Consequent to the order by the Hon’ble Supreme Court 6.00 6.50 Taldih dated 11.05.2018 and grant of subsequent clearances by the Government of Odisha, production at Barsua mine resumed on 20.05.2018. All statutory clearances have been received. MDO has Rowghat New 12.00 been engaged and LOA issued to MDO on 1st August 2017. MSA signed on 25.09.2017 for a period of 30 years. Chiria 0.75 5.80 Stage-II FC awaited from MoEF. * Finished Product capacity . The entire requirement of the increased capacity shall be met through captive mines RAW MATERIALS – Coal

Coking Coal Hot Metal Year Requirement Linkages of Coking Coal (mtpa) (mtpa) • Import Component – 91% • Over 70% of imported coal is sourced from Australia. • Indigenous: 9% 2018-19 17.513 16.515 • Domestic coal is largely sourced from Ltd. • SAIL has existing captive clean coking coal production of nearly 0.7 mtpa, During 2018- 19, production was 0.27 mt. • Long term / Quarterly contracts cover 95% of Import requirements • Tasra captive coal mine being developed to produce 4 mtpa of ROM (1.8 mtpa washed coal) Post 23.46 19.5 • New linkages / acquisitions are being Expansion explored. • Request has been made to Ministry of Coal for allocation of new potential coking coal blocks in line with recommendations of NITI Aayog.

STEEL AUTHORITY OF INDIA LIMITED Strategic Partnerships MAJOR JOINT VENTURES

FOCUS AREA ALLIANCE PARTNER REMARKS

. A Special Purpose Vehicle, namely, ‘ Mega Steel Limited’ has been formed for setting-up STEEL an Ultra Mega Steel Plant (UMSP) in Bastar area of Chhattisgarh.

. SAIL Bansal Service Center Limited – A JV with Bansal Metal Works Ltd. for a Flat Product service centre at Bokaro. DOWNSTREAM . SAIL SCL Kerala Limited – A JV with Govt. of Kerala for STEEL PROCESSING producing TMT Bars at Kozhikode. UNITS . Prime Gold – SAIL JVC Limited – A JV with M/s Prime Gold for producing TMT Bars at Gwalior. . VSL SAIL JVC Limited – A JV with M/s Velagapudi Steel Ltd. for producing TMT Bars at Ujjain.

. JV with NTPC for operating and managing CPPs of ENERGY Bhilai, Durgapur and Rourkela. . JV with DVC for operating & managing CPP of Bokaro. MAJOR JOINT VENTURES

FOCUS AREA ALLIANCE PARTNER REMARKS

. SAIL Kobe Iron India Pvt. Ltd. – A Joint Venture Company has been formulated for setting up a 0.5 TECHNOLOGY mtpa capacity Plant for producing iron nuggets based on ITmk3 technology.

. International Coal Ventures Pvt. Ltd., a SPV of 5 leading PSUs incorporated (SAIL, RINL, CIL, NTPC & NMDC) for acquisition / operation of coal assets in RAW overseas territories.

MATERIALS . M/s S&T Mining Company Pvt. Ltd. formed with for developing coking coal mines in India. . M/s SAIL & MOIL Ferro Alloys (Pvt.) Ltd. formed with MOIL for production of Ferro-alloys at Bhilai.

. Bhilai Jaypee Cement Ltd. -Slag based cement plant of CEMENT 2.2 million tonne per annum capacity with grinding unit at Bhilai & clinkering unit at Satna. MAJOR JOINT VENTURES

ALLIANCE FOCUS AREA OBJECTIVE PARTNER

. SAIL RITES Bengal Wagon Industry Pvt. Ltd. – A WAGON Joint Venture Company has been formed with M/s MANUFACTURE RITES for setting up Wagon Manufacturing Factory at , .

. JV with Tata Steel to promote e-commerce E-PORTAL activities in steel and related areas Abbreviations used

• BF Blast Furnace • FOB Freight On Board • SMS Steel Melting Shop • JPC Joint Plant Committee • BOF Basic Oxygen Furnace • Kg/thm Kilo Gram Per Tonne of • THF Twin Hearth Furnace Hot Metal • EAF Electric Arc Furnace • Tpd Tonnes Per Day • BSP Bhilai Steel Plant • MT Million Tonne • DSP Durgapur Steel Plant • Mtpa Million Tonne Per Annum • RSP Rourkela Steel Plant • EBITDA Earnings Before Interest, • BSL Bokaro Steel Limited Taxes, Depreciation & Amortization. • SSP Salem Steel Plant • PAT Profit After Tax • VISL Visvesvaraya Iron & Steel Plant • PBT Profit Before Tax • ASP Alloy Plant • RINL Limited • CPLY Corresponding Period Last Year • CS Crude Steel • G.Cal/tcs Giga Calories per tonne of • CDI Coal Dust Injection Crude Steel • CC Continuous Casting • ISP Integrated Steel Plant • BOO Build-Own-Operate • HDGL Hot Dip Galvanizing Line • GoI Government of India • CR Cold Rolled • MOEF Ministry of Environment • HR Hot Rolled & Forests Disclaimer

Statements / Data which do not relate to SAIL and are used / made in this presentation are from sources which are considered reliable and Company cannot be held for its authenticity. Further, statements describing the Company’s projections, estimates, expectations are “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed depending on the circumstances / situations. Major factors that could affect the Company’s operations include, among others, economic conditions affecting demand / supply and prices in the domestic and global markets in which the Company operates, changes in Government regulations, tax laws and other statutes, etc.